December 20, 2007
Government Savings Plan Confronts Frequent Traders
The Thrift Savings Plan is a 401(k)-type plan established by Congress for government employees to save for their retirement. Last month its board voted to limit participants to two trades a month, because some investors trying to beat the market were driving up transaction costs for the Plan. The problem is especially acute in its international stock fund. Predictably some participants are organizing an opposition campaign, saying they have a right to trade whenever they want. The SEC requires mutual fund boards to consider taking steps to prevent market-timing in their funds. WPost, Too-Frequent Traders?
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